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What is the difference between primary and secondary competition?

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March 29, 2008 4:51PM

Primary competitors within an industry are competitors that offer a nearly identical product or service. Secondary competitors offer a substitute good or service, which might be of a lower caliber but still related. ex: a guy with a hot dog stand would be a primary competitor to a guy down the street with a hot dog stand, but someone selling ice cream could be considered to be a secondary competitor.